Discuss the Effects on Accounting Reporting of the Movement in the Early

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The Answer is The movement in the early 1960s from a stewardship objective to a decision-usefulness objective had significant effects on accounting reporting.

Under the stewardship objective, the primary focus of financial reporting was to provide information about the company's performance and financial position to shareholders and other stakeholders. This approach emphasized the historical cost of assets and the allocation of costs over time, with the goal of providing a true and fair view of the company's financial position.

However, the shift to a decision-usefulness objective in the early 1960s marked a fundamental change in the purpose of financial reporting. Instead of simply providing a historical record of the company's performance, the new objective aimed to provide information that would be useful for making economic decisions. This included not only shareholders, but also creditors, analysts, and other users of financial information.

As a result, accounting reporting began to focus more on the relevance and reliability of information, rather than just historical cost. This led to the development of new accounting standards and principles, such as the emphasis on fair value accounting and the recognition of market-based values for assets and liabilities.

Additionally, the shift to a decision-usefulness objective also led to the development of new financial reporting formats and disclosures, such as the inclusion of management discussion and analysis (MD&A) and the use of non-GAAP measures to provide a more comprehensive view of a company's financial performance.

Overall, the movement from a stewardship objective to a decision-usefulness objective in the early 1960s had a profound impact on accounting reporting, leading to a greater emphasis on providing relevant and reliable information for decision-making purposes.

Discuss the Effects on Accounting Reporting of the Movement in the Early

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